De-mything ‘Welfare’

Kate Hessling, Tribune Staff Writer

Published 8:00 pm, Monday, September 29, 2008

HURONCOUNTY— It’s a fact: Huron County and the state of Michigan are struggling with poverty.

While nearly one in eight Americans live at or below the national poverty level, almost one in three people in Michigan are living at or below the national level, according to the Michigan Department of Human Services (DHS).

For Americans, those living at or below the national poverty level include 13.5 million children. For Michigan, this includes half a million children.

Those included in the one out of three people in Michigan living in poverty are low-income individuals who cannot meet their basic needs without assistance, according to the Center for American Progress, a Washington, DC-based think tank.

Because of this, the need for (and participation in) financial assistance programs across the state have increased in recent years.

In Huron County, the number of cases in the Food Assistance Program (formerly food stamps) has increased — as has the number of cases enrolled Medicaid, said Huron/Tuscola County DHS Director Leonard Richards.

Earlier this month, Richards presented local statistics and an overview of “Tax Dollars at Work,” a report issued by the Michigan League of Human Services (MLHS), that found more than $54.4 million was spent on selected health and social programs in Huron County 2007.

Following media coverage of that presentation, a variety of questions were asked and concerns were raised from a number of individuals that ranged from those who were curious about where that money came from and how it was spent, to those who were angry and felt “welfare” recipients were undeserving of medical coverage, cash assistance through the Family Independence Program (FIP) and/or a Bridge card (formerly food stamps).

As to the source of funding for programs like the Food Assistance Program (FAP), FIP and medical services (including Medicaid), Richards explained moneys for those programs come primarily from the federal government. Other funding for those programs comes from the state government.

County benefits from assistance programs

Richards stressed Huron County does not pay any funding into these financial assistance programs — however, the county does benefit from these programs in two ways.

The first way these health and social programs help the area is that they assist individuals and families who are in a difficult situation, he said.

“It’s not lazy individuals,” Richards said. “ … They’re working — they just can’t make enough to survive.”

The second way Richards said these programs help the county is that the federal and state tax dollars spent in assistance to individuals in the area is returned to the community because, for the most part, that’s where individuals receiving assistance spend their money.

It’s federal and state tax dollars that go to local landlords, grocers, retailers, daycare and medical care providers, and so on, he said.

Not a free ride

While the financial assistance programs benefit local business and at the same time assist those who are low-income and in need in the area, the programs do not give anyone the free ride that many in society inaccurately perceive to exist.

For example, a family of four who has no income whatsoever receives a monthly sum of $593 in cash assistance, Richards said. This $593 has to cover rent, utilities, transportation, clothing and just about any other expense (including some food costs).

Now, if one or both of the parents in that family were to get a job — even a part-time job — that assistance would decrease (while the actual money in the family’s pockets has increased). For example, say that same family of four earns an extra $500 in employment each month, then the amount of cash assistance they would received each month would decrease to $353. But, that total, combined with the $500 of earned income, makes for a total of $853 that family would have each month (rather than not working and only having the $593 in cash assistance).

This shows it doesn’t pay to not work and solely collect benefits.

“It’s to your benefit to be employed because you have more money (when you’re working),” Richards said.

Many receiving cash assistance are working

And that family of four example — the example where there’s no income whatsoever coming into the house — isn’t an accurate reflection of the situation of those in Huron County who are receiving cash assistance. As of July, there were 107 families who were eligible to receive cash assistance. Of those, 18 percent had earnings from employment, and 19 percent received some sort of unearned income (including unemployment benefits and social security).

Huron County Family Independence Manager Julie Booms said 26 percent of the families receiving cash assistance that month were employable, meaning if they were getting cash assistance, they also were referred to (and required to) participate in Jobs, Employment and Training (JET) with Michigan Works.

The goal is for parents in those families to get training and/or new or additional employment, Booms said.

“Because some of them already have a part-time job, they’re just not making enough and they’ll still qualify for some cash assistance,” she said. “Our goal for them is to be self-sufficient, and that means that they have enough earnings that they no longer qualify for our cash assistance program.”

Richards said as long as they’re receiving those benefits, they have to continue participating in JET, Richards said.

Time limit for receiving cash assistance

There is a 48-month time limit as to how long an individual can receive cash assistance, Booms said. That limit is 48 months in a lifetime (though there are a few, extenuating circumstances).

The bottom line is that for the most part, someone who is able-bodied can not live on cash benefits forever — regardless of how many children someone may have.

The truth about food/medicalcare assistance

When it comes to food, Richards said there were 1,848 FAP cases opened in July. The total number of recipients receiving FAP benefits that month was 3,880 — which cost $361,877 (or an average of $93.27 per recipient).

In nearly 35 percent of the cases where families/individuals received food assistance, there was at least one member of the household receiving some kind of earnings from employment, Booms said. An even larger percentage — 47 percent — of the FAP recipients had received some sort of unearned income.

Like cash assistance, the amount of food assistance decreases as the amount of income — earned or unearned — increases.

There were a total of 3,573 Medicaid/health care assistance cases in July, involving 5,400 recipients, Richards said.

Of those, Booms said more than 36 percent had earnings from employment, and another 50 percent were receiving some sort of unearned income. Just like with the food assistance and cash assistance programs, the amount of Medicaid coverage decreases as the amount of income increases.

The majority of Medicaid coverage in Huron County — 37 percent — went to children under the age 19, or to eligible, low-income pregnant women. The second highest category of those receiving Medicaid were families (which received 31 percent of the Medicaid coverage), and then disabled (which made up 20 percent of those receiving Medicaid).

The idea that those receiving Medicaid coverage are having 100 percent of their health care paid for is not true, Booms said, noting some have deductibles, which are based on income levels below 40 percent of the poverty level. She added some never even meet their deductibles (including some families, disabled and individuals age 65 and older). Others meet the deductibles only occasionally.

Assistance available for those in need

Booms said people often think they make too much to qualify for any kind of assistance. However, both she and Richards said if someone really needs assistance, they should at least try to look into some of the programs that are out there.

“If you’re struggling terribly … if your income is limited and you’re struggling, it would be worth your while to come see us,” Richards said.

The programs and eligibility requirements for assistance are very numerous and complicated, Richards said, citing the fact that there are more than 40 Medicaid programs alone that people can qualify under.

“People want to know, ‘How much can I make (to still qualify for Medicaid, cash assistance and/or a Bridge card)?’ It’s not that simple,” he said. “The only way to tell is to process an application.”

Applications can be obtained by calling the Huron County Department of Human Services at (989) 269-9201 or visiting www.michigan.gov/dhs.